How to Dispute a Contractor’s Lien on Your Property
Discovering that a contractor has placed a lien on your home can be alarming. A mechanic’s lien is a legal claim against your property filed by a contractor or supplier who alleges they were not paid for work or materials. A valid lien can prevent you from selling or refinancing your home until the debt is settled.
However, sometimes liens are invalid, improper, or fraudulent. If you find yourself in this situation, you have the right to dispute it. Here are the steps to take.
Step 1: Review the Lien and Your Contract
First, obtain a copy of the lien from your county records office. Review it carefully for any inaccuracies regarding the amount owed, the work performed, or the dates. Compare it against your original contract and all your payment records. A valid lien must adhere to strict legal requirements, and any error could be grounds for invalidation.
Step 2: Contact the Contractor
Your first move should be to contact the contractor who filed the lien (the claimant). There may have been a simple miscommunication or billing error. Politely discuss the dispute and present your records (e.g., proof of payment). If you can reach a settlement, ensure that the contractor files a “release of lien” with the county office to officially remove it.
Step 3: Send a Formal Letter via Certified Mail
If an informal discussion doesn’t resolve the issue, send a formal letter to the contractor via certified mail. In the letter, you should demand proof of the claim, present your own evidence (like canceled checks or receipts), and state your intention to take legal action if the lien is not removed.
Step 4: Consult a Construction or Real Estate Attorney
If the contractor refuses to release the lien, it is time to seek legal advice. An attorney specializing in construction or real estate law can review your case, advise you on your rights, and send a formal demand letter on your behalf. Often, a letter from an attorney is enough to get an improper lien removed.
Step 5: File a Lawsuit to Invalidate the Lien
As a last resort, your attorney can file a lawsuit to have the lien declared invalid by a court. If you can prove that you paid for the work, that the work was not performed as contracted, or that the lien was filed improperly, a judge can issue a court order to have it removed from your title.
Why Domidocs is Your Most Powerful Tool in a Dispute
A successful lien dispute is built on a foundation of excellent records. Domidocs is the ultimate record-keeping system for homeowners, giving you the evidence you need to protect yourself.
Before any project, you can use the Domidocs secure digital vault to store the original signed contract and proof of the contractor’s license and insurance. Throughout the project, you can upload photos of the work in progress and scan every single receipt and proof of payment. This creates a time-stamped, indisputable record of the entire project. If a contractor ever files an improper lien, you will have a perfectly organized digital file of evidence ready to present to them, their attorney, or a judge, making your case clear, professional, and powerful.
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See how DomiDocs and HomeLock™ can protect your home in this Press Release! This layered approach protects both your legal ownership and your financial identity. For more information, read our article on how HomeLock™ can protect you from Title and Deed Fraud.